Possible scenario
BoC Easing Repriced
40% Chance
The job loss is treated as confirmation that the Canadian economy is weakening again after the temporary summer improvement. Markets pull forward expectations for another Bank of Canada cut, keeping the Canadian dollar under pressure and weighing on domestic cyclicals.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- US dollar Up
- Copper Down
Secondary impacts
- Consumer Cyclicals -1.2%
Portfolio impact
S&P 500-0.8%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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